Return on IT (ROIT) is up along with spending trends

Although it’s Not time to 'Party Like its 1999', there is plenty to Celebrate

	An Alinean white paper study by Tom Pisello, CEO and founder and ex-Managing VP, Gartner Click to view the White Paper in its entirety »

EXECUTIVE SUMMARY

To obtain perspective on the challenges for IT executives and what it means to IT solution provider sales and marketing, it is vital to examine IT spending, opportunities for improvement and effectiveness metrics. To provide insight, each year we analyze over 21,000 companies in 37 different industry segments worldwide, the results show that there are several significant findings to examine in relation to IT cost justification and business value selling:

1. Innovation spending is up sharply by 43% since 2003 and will likely continue to grow

2. IT efficiency has increased 10% allowing companies to do more with less

3. Yet, IT projects remain risky, with almost half of all IT projects cancelled prior to completion, or fail to meet schedule, budget or feature requirements, and only 1 in 4 launched successfully and delivering on promised benefits

4. IT spending is up, but when examined in relation to revenue growth, overall IT spending has lagged for the second year in a row declining to only 3.3% of revenue

5. More stakeholders are involved in each IT decision making it harder to gain approval and consensus

6. IT Executives prioritize proving and improving the value of IT high, but progress is slow in actually addressing slow in actually addressing the issue and quantifying value

7. Frugal remains best as top IT performers under-spend laggards and the average

8. Overall IT spending, even though lagging revenue growth, is driving superior and quantifiable corporate performance in the majority of industries, and has improved 67% from 2003.

To examine each of these eight trends in detail and what they will mean for 2007,
click here to view the White Paper in its entirety »